Morgan Stanley Executive Says Millennial Generation Investors Prefer Bitcoin Over Gold
10. Sep 2020 Posted by Akolkar B on News
The Bitcoin vs Gold debate has always been at the center of discussions among the global investors. The two different asset class has been consolidating their positions ad favourites among new-age investors and traditional investors.
Recently, Morgan Stanley’s head of emerging markets and chief global strategist Ruchir Sharma spilled the beans about who prefers what. During an interview with CNN anchor Julia Chatterley, on Tuesday, September 8, there’s some generational divide when it comes to investments.
Mr. Sharma said that the young and adventurous, especially the millennial generation usually go for crypto, specifically Bitcoin (BTC) over gold, while the traditional investors still prefer the yellow metal.
“I think some of the older [investors] are still buying gold, and millennials are buying more of the Bitcoins and the cryptocurrencies,” said Sharma.
Well, there’s particularly more favorable reason as to why the young people are leaning more towards Bitcoin. The Fed has been printing massive sums of money over the last six months to overcome the economic challenges, job losses and unemployment caused by the Coronavirus pandemic.
With more money flushed into the global economy many analysts are predicting an inflation in 2021, and thus investors are choosing Bitcoin as a potential hedge. “There is this lingering feeling out there that given what central banks are doing in terms of printing so much money, there is a search for alternative assets,” said Sharma.
“To have about 5% or so of your portfolio in gold is not a bad idea. If you're a bit more adventurous — and I guess it’s more to do with demographics — then obviously search for Bitcoin and other cryptocurrencies,” he added.
Recently, Gemini founders and billionaire Bitcoin investors - Winklevoss twins - also noted that Bitcoin will outperform Gold in the long-term. As per the twin brothers, the fair value of Bitcoin in the long-run would be anywhere close to $500,000.
The twin brother argue that Bitcoin and oil are difficult assets to transfer worldwide and this is where Bitcoin has a leverage over the two.
In another classic case of Bitcoin vs Gold, popular Bitcoin and gold advocate critic Peter Schiff said that his son Spencer Schiff, who’s 18, has an opposite investment style and prefers Bitcoin over Gold.
Against my advice my son @SchiffSpencer just bought even more. Whose advice do you want to follow? A 57-year-old experienced investor/business owner who's been an investment professional for over 30 years or an 18-year-old college freshman who's never even had a job,” Tweeted Peter Schiff.